Dividend changes may be used by management as a credible communication tool to s

Question

Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories?

Select one:

a. the clientele effect

b. the expectations theory

d. the information effect

Question 19

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Question text

In perfect capital markets there

Select one:

a. are no income taxes.

c. All of these.

d. is no informational content assigned to a particular dividend policy.

Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories? Select one: a. the clientele effect b. the expectations theory c. the residual dividend theory c. All of these. d. is no informational content assigned to a particular dividend policy. d. the information effect Question 19 Incorrect Mark 0.00 out of 1.00 Flag question Question text In perfect capital markets there Select one: a. are no income taxes. b. are no flotation costs.

Explanation / Answer

1. Answer A: Clientele Effect

2. Anser C: No income taxes and no flotation cost

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